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Full Breakdown

Texas AG Candidate Calls for Probe of SpaceX Starlink Grants

7/10/2026, 9:23:57 PM

Core Claim and Intended Action

Democratic state senator Nathan Johnson, who won the Texas attorney-general primary runoff in May 2026, announced that he will investigate the $110 million State of Texas grant awarded to Elon Musk’s SpaceX for its Starlink satellite broadband program if elected in November. Johnson told the *Dallas News* the award—where Republicans allocated 99 % of the available funds to SpaceX—“sure looks like” corruption, and he pledged to work with the state comptroller to audit the contract-awarding process.

Grant Process and Legislative Changes

The grants were signed off by Republican Governor Greg Abbott after his office revised bidding rules to favor low-Earth-orbit satellite providers. Bryant Clayton, director of the Texas Broadband Development Office (BDO), testified that the governor’s office asked the BDO to compare its structure with other states, noting the state was “out of step with other nearby states.” Eight ground-based fiber broadband firms complained that the revised application process excluded them, a point acknowledged by Republican committee chair Charles Schwertner.

Official Statements & Responses

Johnson framed the investigation as an anti-corruption measure, saying the attorney general must ensure “government serves the public good over private interests, not the other way around.” Governor Abbott’s press secretary Andrew Mahaleris defended the awards, stating the grants were directed to SpaceX because “ground-based broadband solutions were costly and problematic” and that “Low Earth orbit satellite service is essential for the most remote areas where traditional fiber is too expensive and slow to build.”

Criticism & Opposition

Critics argue the grant’s concentration on a single private company raises concerns about favoritism and transparency. Republican legislators have highlighted the need for rapid, cost-effective broadband expansion, while opponents of Johnson’s proposal warn that a probe could delay service rollout to rural Texans.

Verbatim Quotes

  • “I am not declaring that corruption was at work in this instance. I am saying that it sure looks like it,” — Nathan Johnson, State Senator
  • “Public confidence in the bidding process has been undermined.” — Nathan Johnson, State Senator
  • “The AG is supposed to ensure that government serves the public good over private interests, not the other way around,” — Nathan Johnson, State Senator (X post, June 2026)
  • “Governor Abbott supports getting high-speed internet to rural Texans as quickly and cost-effectively as possible,” — Andrew Mahaleris, Press Secretary for Governor Abbott
  • “Low Earth orbit satellite service is essential for the most remote areas where traditional fiber is too expensive and slow to build.” — Andrew Mahaleris, Press Secretary for Governor Abbott